copyright © 2007 pearson education canada8-1 chapter eight product and branding strategy with duane...

Copyright © 2007 Pearson Education Canada8-1

Chapter EightProduct and Branding Strategy

With Duane Weaver


OUTLINE

• Products

• Branding

• Packaging

• Labeling

• Services

• Responsibility Marketing


Products Defined• Product: any market offering that is intended to

satisfy a want or need.

• Service: a type of product that is intangible and does not result in the ownership of anything.

• Experience: a type of product that combines a service or physical product with a memorable experience.


Levels of a Product

• Core product or benefit.

• Actual product.– Packaging, features, design, quality level,

brand name.

• Augmented product.– Warranty, delivery, credit, installation,

service.


• Convenience — Frequent purchase, easy buy, highly available, mass promotion.

• Shopping — Less frequent, brand comparison, selective distribution and promotion.

• Specialty — Strong brand preference, special effort, low price sensitivity, exclusive distribution, targeted promotion.

• Unsought — Low awareness, new innovations, negative interest (don’t want to think about it), need lots of advertising and personal selling.

• PLEASE GET INTO YOUR GROUPS:provide one example for each of the above Types (explain why you chose that one).

Consumer Product Types


Business Products Types• Materials and parts.

– Raw and manufactured materials, parts.

• Capital items.– Buildings and equipment used in buyer’s

production or operations, long useful life.

• Supplies and services.– Operating supplies, repair and maintenance items

and services.


Product Decisions• Individual product decisions.

– Product attributes.– Branding.– Packaging and labelling.– Product support services.

• Product line decisions.– Product mix.– Line filling.– Line stretching.


Product and Service Attributes• Quality.

– Performance and satisfaction includes level and consistency.

• Features.– Differentiates a product from the

competition.– Assessed based on value and cost.

• Style and design.– Style equals appearance: design is the

heart of the product.


Branding

• Creating, maintaining, protecting and enhancing products and services.

• A brand is a name, term, sign, symbol, design or a combination of these that identifies the maker or seller of a product or service.


Branding

• Advantages to buyers.– Product identification.– Product quality.

• Advantages to sellers.– Basis for product’s quality story.– Provides legal protection.– Helps to segment markets.


Packaging

• Designing and producing the container or wrapper for a product.

• Developing a good package.– Packaging concept.– Package elements.– Product safety.– Environmental concerns.


Labelling

• Printed information appearing on or with the package.

• Performs several functions:– Identifies product or brand.– Describes several things about the product.– Promotes the product through attractive

graphics.


Product Support Services• Assess the value of current services and obtain ideas

for new services.• Assess the cost of providing the services.• Put together a package of services that delights the

customers and yields profits for the company.

IN YOUR GROUPS:think of a product you recently purchased. If you were the business, what other services could you bundle (without extra cost per se) that would have helped to “delight” the customer?


Product Line Decisions• Product line.

– Group of closely related products because they function in a similar manner and are sold to similar segments with similar marketing mixes.

– Product line length refers to the number of items in the product line.

• Line stretching.– Adding products to the line outside of current range.– Can stretch upwards, downwards or both ways.

• Line filling.– Adding more products within current range.– Customers must see a difference or they will get confused by too

many choices.


Product Mix Decisions• Product mix.

– All of the product lines and items that a particular seller offers for sale.

• Width.– Number of different product lines the company

carries.

• Depth.– Number of versions offered of each product in the

line.

• Consistency.– How closely related the various lines are.


Brand Equity

• The positive differential effect that knowing the brand name has on customer response to the product or service.

• Provides:– More brand awareness and loyalty.– Basis for strong, profitable customer

relationships.


Major Brand Strategy Decisions• Brand positioning.

– Attributes, benefits, beliefs and values.

• Brand name selection.– Selection, protection.

• Brand sponsorship.– Manufacturer’s brand, private brand, licensing, co-

branding.

• Brand development.– Line extension, brand extension, multi-brands, new

brand.


Brand Name Selection • It should suggest product’s benefits and

qualities.• It should be easy to pronounce, recognize

and remember.• It should be distinctive.• It should be extendable.• It should translate easily into foreign

languages.• It should be capable of registration and legal

protection.


Four Brand Strategies

Lineextension

Brandextension

Multi-brands

Newbrands

Existing

New

Brand

Existing

New

Product category


Brand Management

• Managing long-term brand equity.– Deliver a full brand experience to

customers.– Train employees to deliver the brand

experience.– Rebrand if needed to meet changing

customer needs.– Appoint brand equity managers.


Service Characteristics• Intangibility.

– Cannot be seen, tasted, felt or smelled before purchasing.

• Inseparability.– Consumed when it is provided and cannot

be separated from the provider.• Variability.

– Quality depends on who provides.• Perishability.

– Cannot be stored or resold.


Major Service Marketing Tasks

• Managing service differentiation.– Develop a differentiated offer, delivery and image.

• Managing service quality.– Be customer obsessed, set high service quality

standards, have good service recovery, empower front-line employees.

• Managing service productivity.– Train current employees or hire new ones, increase

quantity and sacrifice quality, harness technology.


Responsible Product Decisions

• Social responsibility in product decisions.• Things to consider:

– Competition Act.– Hazardous Products Act.– Food and Drug Act.– Patent laws.– Issues for discontinuing products.– Legal and ethical dangers of defective product design.


Thank You for your time

To Brand or NOT to Brand?

copyright © 2007 pearson education canada8-1 chapter eight product and branding strategy with duane...

Documents

product core product

product quality

type of product

product attributes

physical product

actual product

augmented product

product mix